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2023 (10) TMI 1192 - ITAT VISAKHAPATNAMGenuineness of labour and material creditors - On opportunities provided by the AO, the assessee has failed to produce the required evidence in support of the expenditure claimed by the assessee - HELD THAT:- As found from the remand report of the Ld. AO that the assessee has produced confirmation letters from Eight Labour Groups out of the 17 Labour Groups. AO in his remand report also stated that these confirmation letters provided before the CIT(A) as additional evidence are similar to the one given before the AO and hence requested the Ld. CIT(A) to reject the admission of the additional evidence. We also find that there is no merit in the argument of the Ld. AR that the assessee was not given adequate opportunity to submit the additional evidence before the Ld. AO. AO has provided various opportunities to the assessee as detailed in the assessment order. As the assessee has failed to discharge the onus cast on it by providing material evidence with respect to labour payments and material payments even before us, we find that the Ld. CIT(A) has rightly sustained the addition made by the Ld. AO and therefore we find no infirmity in the order of the Ld. CIT (A) and hence no interference is required in the order of the Ld. CIT(A). Request of the assessee to estimate the income by rejecting the books of accounts rejected - HELD THAT:- The assessee being a Private Limited Company is necessarily subjected to Audit under Companies Act and was also covered by the provisions of section 44AB - AO has rightly not considered the request of the assessee to estimate the income by rejecting the books of accounts. Since the books of accounts have not been rejected and the income is not estimated by the Ld AO, and therefore the plea of the assessee that the additions made on account of labour creditors are liable to be deleted could not be accepted. Additions u/s. 40(a)(ia) - assessee has failed to deduct the tax at source - HELD THAT:- We find that it is not in dispute that the assessee is under obligation to deduct tax at source on various payments as envisaged in the Act. In the instant case, the assessee has failed to deduct the tax at source thereby disallowance U/s. 40(a)(ia) is warranted. Appeal of the assessee is dismissed.
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